Demand dropped by nearly 7 percent last year to 2.37 million vehicles, the largest fall since registrations nosedived 11.3 percent in 2008, preliminary data from the Society of Motor Manufacturers and Traders (SMMT) showed.

The report comes amid reports of JLR being forced to make job cuts, shedding more than 1,000 agency staff and putting 2,000 workers at its Castle Bromwich plant in the West Midlands on a three-day week.

May delayed a vote last week on her agreement to leave the European Union because she was set to lose in parliament and has tried to secure "assurances" from the bloc to try to better sell it to sceptical lawmakers.

A cross-departmental analysis found leaving the EU will leave Britain poorer than it would have been had it remained inside the bloc, even accounting for new trade deals it would eventually be able to sign.

"A 'no-deal' Brexit next March is not an option for British business as it would hinder free trade that is important for us and our sector which imports parts and exports globally," McLaren's Mike Flewitt said on Monday.

Britain's Prime Minister Theresa May is fighting to defend a draft deal agreed with the EU but opposition from both within and outside her party has raised the possibility of a no-deal hard Brexit or even another referendum.

Manufacturers like Rolls-Royce fear new customs duties and red tape could threaten the just-in-time delivery of thousands of parts on which they depend if Britain crashes out of the European Union on March 29.

Ralf Speth also said the company would not be able to build cars if post-Brexit customs checks meant that the motorway to and from the southern English port of Dover, which is used to transport components, becomes a "car park" due to snarl-ups.

In 2018, automobile demand remained robust despite the slowdown overcast in the last three months of year. All segments reported strong double-digit growth in the calendar year ending December 31 except passenger vehicles which reported a growth of 5 per cent. Three-wheelers sales grew fastest followed by commercial vehicles, two-wheelers, and passenger vehicles. The overall automobile sales crossed 26.7 million units for the first time.

In 2018, automobile demand remained robust despite the slowdown overcast in the last three months of year. All segments reported strong double-digit growth in the calendar year ending December 31 except passenger vehicles which reported a growth of 5 per cent. Three-wheelers sales grew fastest followed by commercial vehicles, two-wheelers, and passenger vehicles. The overall automobile sales crossed 26.7 million units for the first time.